WisdomTree, a global issuer of exchange-traded products and funds with approximately $112 billion in assets under management, has announced that it has received clearance from the Financial Conduct Authority (FCA) to launch two new products on the London Stock Exchange (LSE): WisdomTree Physical Ethereum (ETHW) and WisdomTree Physical Bitcoin (BTCW).
These physically backed exchange-traded products (ETPs) will be available exclusively to professional investors at first, with the potential for future access by regular investors. The launch is scheduled for May 28, 2024.
WisdomTree’s Head of Europe, Alexis Marinof, highlighted the significance of this development, stating that it will provide UK-based professional investors with a more accessible entry point into the cryptocurrency market. He also mentioned that the new products will offer competitive trading conditions with a management expense ratio (MER) of 0.35%.
The FCA’s approval of these crypto ETPs is expected to pave the way for increased institutional adoption of cryptocurrencies, as it helps to overcome the uncertainty and legal restrictions that have previously hindered professional investors. Marinof emphasized that the broader acceptance of digital assets depends on achieving regulatory milestones like this.
WisdomTree has a history of pioneering cryptocurrency ETPs in Europe, having launched its first products in 2019. It currently offers a range of crypto ETPs listed on exchanges in Germany, Switzerland, Paris, and Amsterdam. In January 2024, WisdomTree made history by introducing the first Bitcoin ETF on Wall Street, the WisdomTree Bitcoin Fund, which aims to provide exposure to the price of Bitcoin with lower costs and liabilities.
The market for cryptocurrencies has been experiencing volatility, with Bitcoin (BTC) currently valued at around $70,057.56, down 1.73% in the last day but still showing a bullish trend after a 29.10% increase in the previous week. Ethereum (ETH) is trading at approximately $3,735.81, down 1.35% in the last 24 hours but continuing its upward trajectory from the previous week.
In light of these developments, Standard Chartered Bank predicts that the approval of a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC) could attract between $15 billion and $45 billion in its first year, underscoring the significant market interest and potential impact of such regulatory decisions.